Replies to post #39242 on A.I.M. Users Bulletin Board (AIMUSERS)

[AImanager]

The only downside with rebalance models, in my opinion, is that it doesn't necessarily guaranty you'll be buying something that is "down" when you rebalance from something that is "up." It is possible that you could have your stock index fund up 25% and your bond fund up just 10% and this would allow for a "rebalance." However, you're not necessarily buying the bond index fund at an optimal time.

Thanks. That makes a lot of sense!

[AImanager]

Many here do use index funds in the form of Exchange Traded Funds (ETFs) with a few using traditional mutual funds.

Thanks for the article. Interesting read.

In order to implement an Ultimate Buy and AIM strategy you would need a substantial amount of money, though, as each individual systems needs enough money put in investments as well as your cash stash.

On the subject of ETF's: isn't it hard to select a proper (i.e. volatile) ETF? I back-tested a couple of iShares funds and the number of trading opportunities is way smaller than with individual high beta stocks.

On a related note: do you think foreign currency stocks reinforce or reduce volatility? Or should that be determined on a case by case basis?